As I wrap up the end of the year, I have been going thru my database. Looking at leads not closed, leads that did close and making some assessments to frame my business in the new year. One of the common denominators for not closed buyer leads is their credit scores~most are lower than the lender would allow for a loan.

Prior to 2008 I could place buyers with credit scores of 580 in either a FHA or a USDA loan. As a company we have many homes that are owned by people who started with that score. When you drive by their homes now, the yards have been landscaped, the house is lit with decorations, their pride of ownership is shining thru.

Now, the lowest score I can place with a lender is 620many local lenders have attached 660 to certain loan products. I have felt this shift in my business immensely. I have read to the best of my ability all of the news articles, business magazines articles, banking articles possible. I try to understand the rules and regulations so that when I have a buyer I can walk them thru common sense and not so common sense guidelines. More than anything when they call me frantic over something in the loan process I want to be able to help. I understand that banks/mortgage companies had to establish guidelines based on default measure.

I believe that credit scores are floating, non-scientific measure of the buyers ability to pay. I think it is a ridiculous beginning guideline. I believe that it in no way measures in my community who will pay and stay and who will walk away. I believe that right now we are missing the point. When a database has 1, 10, 20 or 50 buyers who want to own a home, who have jobs, who love and believe in their community then we need to find a way to make them a permanent part of the community. I want to find a way to make them homeowners.